Welcome to Blog 10, the first of a three-part series!
In past blogs, we have typically analyzed two companies. However, for the next three blogs, we will be comparing two companies’ financials instead!
Our next comparison is between Triumph Group and Benchmark Electronics, two globally-recognized manufacturing companies.
Triumph Group is an American company that supplies aerospace services, structures, systems, and support. Its mission is to use their vast design and manufacturing resources to make the world safer.
Benchmark Electronics is an American business that provides product lifecycle solutions from product design to advanced manufacturing.
Refer to the figure below to view a financial comparison between Benchmark Electronics and Triumph Group.
|Triumph Group Inc||Benchmark Electronics Inc||Advantage|
|Stock Price||$12.70||$21.52||Benchmark Electronics|
|Current Ratio||1.6||2.12||Benchmark Electronics|
|Quick Ratio||1||1.23||Benchmark Electronics|
|Gross Margin||26.50%||9.13%||Triumph Group|
|Operating Margin||7.14%||2.36%||Triumph Group|
|Profit Margin||-2.93%||1.59%||Benchmark Electronics|
|Return on Total Assets||-2.38%||2.05%||Benchmark Electronics|
|Return on Equity||5.26%||4.00%||Triumph Group|
|Debt-to-Equity Ratio||-3.24||0.96||Benchmark Electronics|
|1-Year Performance||-35.79%||-21.21%||Benchmark Electronics|
|5-Year Performance||-60.43%||-33.72%||Benchmark Electronics|
|P/E Ratio||11.82||19.36||Benchmark Electronics|
|P/S Ratio||0.57||0.33||Benchmark Electronics|
|Market Cap||$832.98M||$779.51M||Triumph Group|
|Enterprise Value||$2.13B||$765.39M||Triumph Group|
|Revenue QoQ||-17.18%||25.78%||Benchmark Electronics|
|Revenue YoY||-21.92%||16.72%||Benchmark Electronics|
|EBIT Margin||6.71%||2.40%||Triumph Group|
|EBITDA Margin||12.66%||3.30%||Triumph Group|
|Gross Profit||$386.88M||$205.9M||Triumph Group|
|Operating Income||$104.23M||$53.06M||Triumph Group|
|Total||12||15||Benchmark Electronics Inc|
From start to finish, Benchmark Electronics is far and away a better company in both the short-term and the long-term.
It is important to note that Triumph has more gross profit and operating income than Benchmark. These two metrics are critical indicators of 1-year performance.
Despite this setback, Benchmark has advantages in other long-term indicators such as 1-year and 5-year performance, YoY Revenue Growth, and quick and current ratios. Additionally, Benchmark is far less risky and has a much higher yearly revenue though they are a smaller company than Triumph.
Therefore, we can conclude that Benchmark is a better stock to invest in for both the short-term and long-term.
Our term for this blog is the Fixed Asset Turnover Ratio. Fixed Asset Turnover Ratio measurements serve as an indicator of the efficiency of a company when using their fixed assets to generate revenue. A high value implies effective utilization, and a low value implies ineffective utilization.